Illinois Circuit Court Declares “Amazon Tax” Legislation Unconstitutional

A Cook County circuit court judge has issued an order ruling that Illinois' 2011 “Amazon tax” legislation is unconstitutional. In rendering its decision, the court found that the legislation (L. 2011, H3659 (P.A. 96-1544)), fails the “substantial nexus” requirement for state use tax collection and reporting obligations under the Commerce Clause of the U.S. Constitution, and that the legislation is preempted under the Supremacy Clause of the U.S. Constitution by virtue of the federal moratorium against discriminatory state taxes on electronic commerce. Performance Marketing Association, Inc. v. Hamer, Ill. Cir. Ct. (Cook County)